IDEAS home Printed from https://ideas.repec.org/p/zbw/zewdip/12012.html
   My bibliography  Save this paper

Selection bias in innovation studies: A simple test

Author

Listed:
  • De Rassenfosse, Gaétan
  • Wastyn, Annelies

Abstract

The study of the innovative output of firms often relies on a count of patents filed at one single office of reference such as the European Patent Office (EPO). Yet, not all firms file their patents at the EPO, raising the specter of a selection bias. Using a novel dataset of the whole population of patents by Belgian firms, we show that the single-office count results in a selection bias that affects econometric estimates of innovation production functions. We propose a methodology to evaluate whether estimates that rely on the single-office count are affected by a selection bias.

Suggested Citation

  • De Rassenfosse, Gaétan & Wastyn, Annelies, 2012. "Selection bias in innovation studies: A simple test," ZEW Discussion Papers 12-012, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:12012
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/56018/1/688586813.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Czarnitzki, Dirk & Kraft, Kornelius & Thorwarth, Susanne, 2009. "The knowledge production of 'R' and 'D'," Economics Letters, Elsevier, vol. 105(1), pages 141-143, October.
    2. de Rassenfosse, Gaetan & van Pottelsberghe de la Potterie, Bruno, 2009. "A policy insight into the R&D-patent relationship," Research Policy, Elsevier, vol. 38(5), pages 779-792, June.
    3. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
    4. Juan A. Correa, 2012. "Innovation and competition: An unstable relationship," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 27(1), pages 160-166, January.
    5. Coupe, Tom, 2003. "Science Is Golden: Academic R&D and University Patents," The Journal of Technology Transfer, Springer, vol. 28(1), pages 31-46, January.
    6. Rentocchini, Francesco, 2011. "Sources and characteristics of software patents in the European Union: Some empirical considerations," Information Economics and Policy, Elsevier, vol. 23(1), pages 141-157, March.
    7. Payne A. Abigail & Siow Aloysius, 2003. "Does Federal Research Funding Increase University Research Output?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-24, May.
    8. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    9. Saul Lach & Mark Schankerman, 2008. "Incentives and invention in universities," RAND Journal of Economics, RAND Corporation, vol. 39(2), pages 403-433.
    10. Nicolas van Zeebroeck & Bruno van Pottelsberghe de la Potterie, 2011. "Filing strategies and patent value," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(6), pages 539-561, February.
    11. Stoneman, P, 1979. "Patenting Activity: A Re-evaluation of the Influence of Demand Pressures," Journal of Industrial Economics, Wiley Blackwell, vol. 27(4), pages 385-401, June.
    12. Valentina Meliciani, 2000. "The relationship between R&D, investment and patents: a panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 32(11), pages 1429-1437.
    13. Blundell, Richard & Griffith, Rachel & Windmeijer, Frank, 2002. "Individual effects and dynamics in count data models," Journal of Econometrics, Elsevier, vol. 108(1), pages 113-131, May.
    14. Dirk Czarnitzki & Bernd Ebersberger & Andreas Fier, 2007. "The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1347-1366.
    15. repec:fth:harver:1473 is not listed on IDEAS
    16. de Rassenfosse, Gaétan & Dernis, Hélène & Guellec, Dominique & Picci, Lucio & van Pottelsberghe de la Potterie, Bruno, 2013. "The worldwide count of priority patents: A new indicator of inventive activity," Research Policy, Elsevier, vol. 42(3), pages 720-737.
    17. Jarno Hoekman & Koen Frenken & Frank Oort, 2009. "The geography of collaborative knowledge production in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 721-738, September.
    18. Robert M. Salomon & J. Myles Shaver, 2005. "Learning by Exporting: New Insights from Examining Firm Innovation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(2), pages 431-460, June.
    19. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
    20. Joaquín Azagra-Caro & Nicolas Carayol & Patrick Llerena, 2006. "Patent Production at a European Research University: Exploratory Evidence at the Laboratory Level," The Journal of Technology Transfer, Springer, vol. 31(2), pages 257-268, March.
    21. Dirk Fornahl & Tom Broekel & Ron Boschma, 2011. "What drives patent performance of German biotech firms? The impact of R&D subsidies, knowledge networks and their location," Papers in Regional Science, Wiley Blackwell, vol. 90(2), pages 395-418, June.
    22. Tappeiner, Gottfried & Hauser, Christoph & Walde, Janette, 2008. "Regional knowledge spillovers: Fact or artifact?," Research Policy, Elsevier, vol. 37(5), pages 861-874, June.
    23. Buesa, Mikel & Heijs, Joost & Baumert, Thomas, 2010. "The determinants of regional innovation in Europe: A combined factorial and regression knowledge production function approach," Research Policy, Elsevier, vol. 39(6), pages 722-735, July.
    24. Yuichiro Uchida & Paul Cook, 2007. "Innovation and Market Structure in the Manufacturing Sector: An Application of Linear Feedback Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(4), pages 557-580, August.
    25. Cincera, Michele, 1997. "Patents, R&D, and Technological Spillovers at the Firm Level: Some Evidence from Econometric Count Models for Panel Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(3), pages 265-280, May-June.
    26. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    27. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, vol. 47(4), pages 687-710, August.
    28. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    29. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
    30. Picci, Lucio, 2010. "The internationalization of inventive activity: A gravity model using patent data," Research Policy, Elsevier, vol. 39(8), pages 1070-1081, October.
    31. Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984. "Pseudo Maximum Likelihood Methods: Theory," Econometrica, Econometric Society, vol. 52(3), pages 681-700, May.
    32. Hulya Ulku, 2007. "R&D, innovation, and growth: evidence from four manufacturing sectors in OECD countries," Oxford Economic Papers, Oxford University Press, vol. 59(3), pages 513-535, July.
    33. Akçomak, I. Semih & ter Weel, Bas, 2009. "Social capital, innovation and growth: Evidence from Europe," European Economic Review, Elsevier, vol. 53(5), pages 544-567, July.
    34. Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984. "Pseudo Maximum Likelihood Methods: Applications to Poisson Models," Econometrica, Econometric Society, vol. 52(3), pages 701-720, May.
    35. Michael Fritsch, 2002. "Measuring the Quality of Regional Innovation Systems: A Knowledge Production Function Approach," International Regional Science Review, , vol. 25(1), pages 86-101, January.
    36. Nicolas Carayol, 2007. "Academic incentives and research organization for patenting at a large French university," Post-Print hal-00652488, HAL.
    37. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    38. Ernst, Holger, 1998. "Industrial research as a source of important patents," Research Policy, Elsevier, vol. 27(1), pages 1-15, May.
    39. Nicolas Carayol, 2007. "Academic Incentives, Research Organization And Patenting At A Large French University," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(2), pages 119-138.
    40. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    41. Robert K. Merton, 1935. "Fluctuations in the Rate of Industrial Invention," The Quarterly Journal of Economics, Oxford University Press, vol. 49(3), pages 454-474.
    42. Nicolas van Zeebroeck, 2011. "The puzzle of patent value indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(1), pages 33-62.
    43. Pakes, Ariel & Griliches, Zvi, 1980. "Patents and R&D at the firm level: A first report," Economics Letters, Elsevier, vol. 5(4), pages 377-381.
    44. Richard Blundell & Rachel Griffith & John van Reenen, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Oxford University Press, vol. 66(3), pages 529-554.
    45. repec:crs:wpaper:9833 is not listed on IDEAS
    46. Richard Gilbert, 2006. "Looking for Mr. Schumpeter: Where Are We in the Competition-Innovation Debate?," NBER Chapters,in: Innovation Policy and the Economy, Volume 6, pages 159-215 National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:spr:scient:v:101:y:2014:i:1:d:10.1007_s11192-014-1400-x is not listed on IDEAS
    2. de Rassenfosse, Gaétan & Dernis, Hélène & Guellec, Dominique & Picci, Lucio & van Pottelsberghe de la Potterie, Bruno, 2013. "The worldwide count of priority patents: A new indicator of inventive activity," Research Policy, Elsevier, vol. 42(3), pages 720-737.
    3. Jérôme Danguy & Gaetan de Rassenfosse & Bruno van Pottelsberghe de la Potterie, 2014. "On the origins of the worldwide surge in patenting: an industry perspective on the R&D–patent relationship," Industrial and Corporate Change, Oxford University Press, vol. 23(2), pages 535-572.
    4. Boeing, Philipp & Mueller, Elisabeth, 2016. "Measuring patent quality in cross-country comparison," Economics Letters, Elsevier, vol. 149(C), pages 145-147.
    5. Zwick, Thomas & Frosch, Katharina & Hoisl, Karin & Harhoff, Dietmar, 2017. "The power of individual-level drivers of inventive performance," Research Policy, Elsevier, vol. 46(1), pages 121-137.
    6. Ernest MIGUELEZ, 2014. "Inventor diasporas and the internationalization of technology," Cahiers du GREThA 2014-12, Groupe de Recherche en Economie Théorique et Appliquée.

    More about this item

    Keywords

    Innovation production function; patent; R&D; selection bias;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:12012. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/zemande.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.